Business Lawyer Blog

A LLC (Limited Liability Company) in Texas is neither a corporation nor partnership. Instead, a sole legal entity merges the advantages of typically both. The limited liability company structure provides the security of “LLP” (limited liability protection) for their members whilst allowing them to involve in management and get the tax benefits allied with a partnership.

LLP means members are personally protected from the liabilities of the company and judgments. Generally, liability of member is limited only to amount of his or her investment in the company. Nevertheless, the amount of liability can be altered and set by the rules that you set up for the company.

The Limited Liability Company Act in Texas refers to owners as “members.” The corporate laws permit up to an unlimited number of members for a single member Limited Liability Company. Any legal unit can be a member of a LLC in Texas. It means that partnerships, corporations, individuals and even other LLCs also can be a member of a LLC. Additionally, Texas does not have a citizenship requirement for LLC membership, which means that members can live anywhere. The corporation can be run either by individual managers or by its members. You just have to indicate the form of management you will use when you fulfill your registration paperwork.

Usually, few documents should be submitted annually and must be signed by the management depending on the arrangement you have chosen. Businesses that offer a service require a special license or certification to operate under a distinction of an LLC, which is known as PLLC (Professional Limited Liability Company). Hire a Texas corporate lawyer to know the process better.